VIVO IPLCredit: Reuters

Chinese smartphone major Vivo has pulled out of the IPL sponsorship deal for this edition in a sudden development. However, the company has not ended its sponsorship deal with the Board of Control for Cricket in India (BCCI). As per a report in Moneycontrol, the BCCI is likely to reveal a new sponsor after deliberations.

One of the BCCI sponsors added, "Vivo has dropped out of IPL sponsorship this year. Since they had three years left under the contract, they will now do 2021, 2022, and 2023 instead."

The sources also said that highlighting poor sales and prevailing sentiments against Chinese companies Vivo has asked for Rs 130 crore cut for this edition's IPL. As per the agreement, VIVO was to pay Rs 440 crore to BCCI for this year's IPL. The handset manufacturer struck a deal with BCCI to bag the title sponsorship of IPL for Rs 2,199 crore for five years.

IANS photos

Delighted with the development: CAIT

Confederation of All India Traders (CAIT) that has been a strong voice against VIVO's title sponsorship has expressed joy over the development. CAIT Secretary General Praveen Khandelwal said, "Even though we had expected the BCCI to take a decision and remove Vivo but the BCCI cannot really give up their lust for money and therefore the pressure applied by CAIT for a boycott of the event and withholding permission for IPL 2020 has played strongly on the mind of the Chinese company to push them to take such a bold decision."

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RSS affiliated Swadeshi Jagran Manch had accused IPL Governing Council of disrespecting soldiers martyred while going ahead with VIVO as lead sponsor. The cash-rich league has ties with numerous Chinese companies. In fact, all IPL franchises have sponsorship agreements with Chinese firms. Call for Chinese goods to be boycotted have echoed after 20 Indian soldiers were killed in the June 15 Galwan Valley clash along the Line of Actual Control (LAC).

The IPL this year will be played in UAE from September 19th to November 10th.